Construction Take Out Bridge Loan - Los Angeles, CA
Transaction Details
- Project Type: 62-Unit Ground-Up Multifamily (Pre-TCO Bridge)
- Loan Amount: $18,700,000
- LTC: 80%
- Term: 24-Month Term
- Rate: SOFR + 400, stepping down to SOFR + 375 post-TCO
- Guaranty: Non-Recourse
- Closed: Q3 2024
- Location: Los Angeles, CA
- Arranged By: Tomer Sheelo
Transaction Overview
FOCAL arranged an $18.7 million construction take-out bridge loan for a 62-unit ground-up multifamily project in Los Angeles, California. The financing was arranged by Tomer Sheelo of FOCAL, a Beverly Hills-based commercial real estate debt and equity advisory firm arranging financing nationwide.
At the time of closing, the project was approximately 95% complete, but the sponsor was approaching maturity on its existing bank construction loan while also carrying a hard money mezzanine position. The senior lender was prepared to extend its facility only if the sponsor contributed additional equity, creating a funding challenge at a critical stage of construction.
FOCAL sourced and structured a new bridge facility that refinanced both the senior construction loan and mezzanine debt, funded the remaining construction costs, and included an interest reserve to carry the property through completion and lease-up.
With multiple lenders in the existing capital stack, limited time before maturity, and construction still underway, the transaction required a lender capable of moving quickly and providing flexibility around both structure and execution.
The resulting $18.7 million non-recourse loan addressed the near-term maturity, fully capitalized the remaining construction program, and provided the sponsor with the runway needed to complete the project and transition into lease-up and stabilization.
About FOCAL Advisory
At FOCAL, we are dedicated to empowering our clients through comprehensive real estate advisory services tailored to meet the complexities of today's market. We specialize in market analysis, due diligence, asset management, transaction support, and innovative financing solutions, so that each investment decision is strategic, data-driven, and aligned with our clients' long-term goals.
Every real estate project carries its own unique financing requirements. Our tailored financing solutions provide flexible, efficient, and strategic funding options aligned with the specific needs of each investment - drawing on a broad spectrum of capital sources, from institutional funds and CMBS to agencies, local banks, and private money lenders, on transactions nationwide.
Contact the capital markets team - Tomer Sheelo (DRE 02144916, tomer@focalinvest.com) · (310) 929-6959 · 150 S Rodeo Drive, Suite 100, Beverly Hills, CA 90212.
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